Donchian Breakouts with SuperTrend and Volume Confirmation

Summary

This strategy seeks long entries when price crosses above the prior Donchian upper band, with an optional volume filter requiring volume to exceed its moving average. SuperTrend is one of four selectable exit methods; the others use the lower band, channel midpoint, or a percentage trailing stop. The system also restricts trades to a configurable date range and sizes entries as a share of account equity.

The document describes the indicators, parameters, and risks, but supplies no performance results. Its published backtest settings cover ETH/USDT on Binance over a limited daily-data window, so they do not establish how the strategy performs across markets or regimes. The description says SuperTrend confirms entries, but the source logic uses it as an exit when that option is selected. Range-bound markets can produce false breakouts, while low liquidity can increase slippage; volume filtering may also exclude valid trades. Parameter sensitivity makes broader, out-of-sample evaluation important.

Key ideas

• A long signal occurs when the selected price source crosses above the previous bar’s Donchian upper band.
• An optional filter requires current volume to exceed its moving average.
• The exit can use the lower band, channel midpoint, SuperTrend, or a percentage trailing stop.
• The source uses SuperTrend as an exit option rather than as an entry confirmation filter.
• The published backtest settings describe a limited ETH/USDT daily-data period and report no performance metrics.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.